Expert: Terry Leeders - 2/8/2009

Question
Terry, I am trying to do a loan modification with Indy Mac, there was never a reaffirmation agreement. My attorney says I must reopen the BK at a cost of $586.00. Where does the reaffirmation agreement come from? My attorney or Indy Mac? If Indy then how do I prove the case is reopened? Its a gamble I am still not sure if I will get a modification.

Answer
Either your attorney, but most usually your creditor will prepare the reaffirmation.  All parties - you, your lawyer, and the creditor need to sign the reaffirmation.  It will be up to the court to decide to reopen the case, since reaffirmations have to be filed while the case is open.  Without the reaffirmation, the debt is technically discharged (even though you can keep the home if you make regular payments and the lien stays on the property too) Your other option is to refinance with another company,thereby renewing the debt.